Discounted Cash Flow (DCF) Analysis Levered

Yellow Pages Limited (Y.TO)

$14

0.00 (0.00%)
All numbers are in Millions, Currency in USD
Stock DCF: 16.20 | 14 | undervalue

Free Cash Flow

Year
A/P
2017
Actual
2018
Actual
2019
Actual
2020
Actual
2021
Actual
2022
Projected
2023
Projected
2024
Projected
2025
Projected
2026
Projected
Revenue 745.85577.20403.21333.54287.65227.39179.75142.10112.3388.80
Revenue (%)
Operating Cash Flow 115.34134.66144.76127104.5867.8253.6142.3833.5026.48
Operating Cash Flow (%)
Capital Expenditure -67.71-16.19-9.74-5.57-5.07-8.06-6.37-5.04-3.98-3.15
Capital Expenditure (%)
Free Cash Flow 47.64118.47135.02121.4299.5159.7647.2437.3429.5223.34

Weighted Average Cost Of Capital

Share price $ 14
Beta 0.937
Diluted Shares Outstanding 26.60
Cost of Debt
Tax Rate -17.89
After-tax Cost of Debt 20.19%
Risk-Free Rate
Market Risk Premium
Cost of Equity 8.123
Total Debt 49.88
Total Equity 372.44
Total Capital 422.32
Debt Weighting 11.81
Equity Weighting 88.19
Wacc

Build Up Free Cash Flow

Year
A/P
2017
Actual
2018
Actual
2019
Actual
2020
Actual
2021
Actual
2022
Projected
2023
Projected
2024
Projected
2025
Projected
2026
Projected
Revenue 745.85577.20403.21333.54287.65227.39179.75142.10112.3388.80
Operating Cash Flow 115.34134.66144.76127104.5867.8253.6142.3833.5026.48
Capital Expenditure -67.71-16.19-9.74-5.57-5.07-8.06-6.37-5.04-3.98-3.15
Free Cash Flow 47.64118.47135.02121.4299.5159.7647.2437.3429.5223.34
WACC
PV LFCF 45.4532.8023.6717.0812.32
SUM PV LFCF 157.60

Terminal Value

Growth in perpetuity method:
Long-term growth rate
WACC (%) 9.55
Free cash flow (t + 1) 23.80
Terminal Value 315.26
Present Value of Terminal Value 199.81

Intrinsic Value

Enterprise Value 357.40
Net Debt -73.68
Equity Value 431.08
Shares Outstanding 26.60
Equity Value Per Share 16.20